The present invention generally relates to financing structures/architectures associated with municipal bond financing methods that affect ratings and improve the financiability of self-sustaining assets.
Conventionally, in facilities revenue bond financing, bonds issued to finance the construction or renovation of facilities, for energy companies, educational institutions and healthcare companies, have been supported by the entire company and its affiliate's consolidated balance sheet (referred to as Whole Company Bonds or “WCBs”). Some such companies whose lease payment obligations support the payment of principal and interest on the bonds may be unable to timely repay its obligations due to economic problems, sometimes involving a filing of bankruptcy.